Gold prices ease in line with rupiah's trend<\/p>\n
JAKARTA (JP): Gold prices eased over the weekend after
\nreaching a high of Rp 47,000 per gram on Wednesday as most people
\nsold their gold to profit in the bullish market.<\/p>\n
Some traders told The Jakarta Post Saturday that the prices
\nfor both 24 carat and 22 carat gold dropped at the end of the
\nweek as the rupiah gained a footing against the U.S. dollar.<\/p>\n
Ivan, an employee of Abadi gold store in Tebet, South Jakarta,
\nsaid Saturday that the price of 24 carat gold dropped to Rp
\n40,000 (US$8) per gram on Friday and Saturday from Rp 47,000 per
\ngram on Wednesday.<\/p>\n
The price of 23 carat gold fell to Rp 36,000 per gram from Rp
\n41,000 per gram on Wednesday. The price of 22 carat gold dropped
\nto about Rp 30,000 per gram from its peak of Rp 35,000 per gram,
\nhe said.<\/p>\n
Gold prices on the local market have increased by an average
\nof 50 percent since early July, when the country was first hit by
\na currency crisis.<\/p>\n
The price of gold ranged from Rp 23,000 to Rp 25,000 before
\nthe currency crisis, which has cut the value of the rupiah by
\nover 60 percent against the dollar.<\/p>\n
The rupiah, which was approximately Rp 2,400 to the dollar in
\nearly July, persistently dropped against the greenback in the
\nlast few months. It recorded its lowest level of Rp 5,800 against
\nthe dollar Wednesday because more people rushed to buy dollars
\ndue to concern about President Soeharto's health. It inched up
\nslightly on Thursday and Friday as the President retuned to his
\ndaily activities after a 10-day rest.<\/p>\n
A Liong, the owner of the Victoria gold store in Cikini
\nMarket, Central Jakarta, said that the gold prices could continue
\nto fluctuate in line with the rupiah's direction.<\/p>\n
"It is very difficult to set a fixed price in a currency
\ncrisis. If we hike the price to adjust with the rupiah's value,
\nthere will be no buyers," he told the Post.<\/p>\n
"But if we maintain the old prices we cannot survive because
\nthe goldsmiths' payments are based on the size of gold ingots,
\nwhich are given in dollars," he added.<\/p>\n
The sharp increase in prices have significantly affected gold
\nsales in the past four months. "Most people come to sell their
\ngold jewelry rather than buy more," a trader said.<\/p>\n
"They still want to sell their gold even though prices have
\nbeen dropping since Thursday," Liong said.<\/p>\n
Dewi, the owner of Bonwit gold store in Melawai Indah shopping
\ncenter, South Jakarta, said transactions at her store were also
\ndominated by sellers, who wanted to benefit from the price
\nincreases.<\/p>\n
She said people were waiting for the recovery of the rupiah
\nbefore buying gold jewelry.<\/p>\n
"People are still willing to sell their gold pieces because
\nthey expect prices will continue to drop next week," she said.<\/p>\n
In Pondok Gede, Bekasi, prices were lower. The Asia Indah and
\nKemenangan gold stores in Pondok Gede Plaza set prices of Rp
\n28,000 per gram for 22 carat, Rp 30,000 per gram for 23 carat and
\nRp 40,000 for 25 carat gold. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gold-prices-ease-in-line-with-rupiahs-trend-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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